The Distal Line
Definition: the far edge
Distal means 'far'. For a demand zone the distal line is drawn at the LOWEST point of the base (the bottom wick extreme in body-to-wick marking). For a supply zone it is the HIGHEST point of the base. The distal line is the 'floor' of a demand zone and the 'ceiling' of a supply zone.
Zone failure = close beyond distal
If price closes beyond the distal line, the zone is broken and should no longer be used. For demand: a close below the distal means sellers have overpowered every remaining buyer in that zone. For supply: a close above the distal means buyers have overwhelmed all remaining sellers.
The stop-loss anchor
In a study framework, the protective stop for a demand zone setup sits just below the distal line — with a small buffer to absorb spikes. The distance from entry (near proximal) to the distal line is the risk per unit for that setup.
Proximal + distal = the zone rectangle
Together, the two lines form a rectangle — a shaded box that is the zone. Everything between proximal and distal is 'inside the zone'. Price reaching the proximal activates the zone; price closing beyond the distal kills it.
Practice checklist
- For demand: distal = lowest wick extreme of base candles
- For supply: distal = highest wick extreme of base candles
- Mark the zone broken once price closes clearly beyond the distal
- Stop-loss in study: just beyond the distal line with a small buffer
Mistakes to avoid
- Placing the distal line inside the base — this shrinks the zone incorrectly
- Ignoring a clean close beyond the distal and hoping the zone still holds